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FUTE OF HONG KONG

CONSTITUTIONAL DEVELOPMENT UP TO AND AFTER 1997

1. An important British requirement is to clarify the way in which

constitutional arrangements in Hong Kong should develop in the

period before 1997, particularly where the position of the

governorship is concerned. This is linked to the need to achieve

continuity beyond the period of transition, and hence to be able to

state in the agreement with the Chinese as precisely as possible

what constitutional arrangements would apply after 1997.

2. Whether dealing with the Executive and Legislative Councils, or

with the governorship, our main objective is to establish as firm a

basis as possible for continuity after 1997. The Chinese so far

refuse to include a precise description of the constitutional

machinery in the agreement or annexes, maintaining that this must

await the appearance of, and be in line with, the Basic Law. They

go further and say that arrangements up to 1997 should also be

adjusted when the Basic Law is promulgated. Their general declarations of support for "democracy" in Hong Kong are qualified

by suspicion of our intentions with regard to representative

government; by their view (in their draft exchange of notes) that

the future Chief Executive of the SAR should be appointed after

"election or consultation"; and their indications to us that they

would expect to discuss with us the appointment of senior officials

in the period shortly before 1997.

3.

There is a reasonable prospect that the Chinese may refrain

from any direct criticisms of the proposals in the draft Green Paper

as they affect EXCO and LEGCO, although they are likely to reserve

the right to regard them as experimental and to reverse them after

1997. They would however be much more suspicious of any move

towards an elected local Governor before 1997 since they would

expect HMG to keep control up to that date in order to hand the

territory over in good order, and they would rightly deduce that we

were trying to tie them down on the method of selecting the Chief

Executive after 1997.

4.

From our point of view the arquments in favour of establishing

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